So the premise for this blog is that the high end areas are suffering from financial devastation to the buyers of these homes. They can't get jumbo loans, their investment porfolios are decimated, their businesses are suffering, and they can't sell their homes in places like California because they are under water.
Months of supply on the market for homes over $800,000:
Area 1B 14.4
Area 8E 10.5
Area 8W 15.8
Area W 12.6
Area LN 42.9
Area LS 25.0
Area RN 17.1
These DOM numbers did decrease in the 4th quarter but I don't think it's because lots of homes sold in these price ranges. I think it's because homes were taken off the market and rented or are now being marketed as "pocket listings". There's some guy on Craigslist trying to rent out high end homes really cheaply if you have nice furniture and will leave right away if they sell it. I really don't understand these agents. Instead of telling these high end owners to lower prices and sell now, they tell them to move in tenants and wait for the recovery, which may not come soon at the high end.
Anyway, from 1-3 years of supply? Come on! Your prices are in the tank. Lower them and stop carrying this property people.
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Interest rates will rise, and it something to rejoice. High priced homes have a crippling effect on local economies (unless your a mortgage broker/real estate agent) and Austin has gotten ridiculous in the last ten years. Sorry Mr. Bubble, but in large part, we have California equity vultures to thank for that.
ReplyDeleteWhat we really need in Austin, to see this city flourish, is more flexible wealth to flow for investment and jobs. Dollars tied up in a box that sits outside in the elements and slowly rots, is not an economic driver. HOUSING WEALTH IS NOT NET WEALTH.